Citi makes another cull to their global GDP forecasts

For the second time in two months, Citi cut its estimate for global economic growth next year, on weaker forecasts in a number of countries, including Brazil, China, Japan and Russia.

Revisions to 2014-15 forecasts over the last six months.

Citi now sees global GDP growth of 2.8% in 2014 and of 3.3% in 2015, with the latter seeing a cut of 0.1%, and the former down 0.5% from the January forecast.

Economists led by Willem Buiter are continuing to have worries about China’s growth outlook, given the rapid rise in private debt-to-GDP ratio and signs that a withdrawal of credit stimulus would cause the economy to slow markedly.

Citi also is worried about sluggish world trade growth, and a third factor is the potential for uncertainty from political independence movements, even after the “No” vote in Scotland.

The U.S. forecasts are for 2.3% growth this year, 3.3% in 2015, 3.2% in 2016, 2.7% in 2017 and 2.2% in 2018. Globally, Citi’s at 2.8% this year, 3.3% in 2015, 3.6% in 2016, 3.5% in 2017 and 3.4% in 2018.